We Draw the Long-Run Aggregate Supply Curve as a Vertical

question 290

Multiple Choice

We draw the long-run aggregate supply curve as a vertical line to reflect the fact that

• A) the productive capacity of the economy never changes after full adjustment has occurred.
• B) changes in the price level do not alter the level of long-run real GDP after full adjustment has occurred.
• C) technology and resource endowments do not affect long-run real GDP after full adjustment has occurred.
• D) an accurate depiction of the production possibilities curve is vertical after full adjustment has occurred.

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Definitions:

Inheritance

The process by which genetic information is passed on from parents to their offspring, determining certain characteristics of the offspring.

Irrational

Not logical or reasonable; actions or thoughts that do not follow rational principles.

Reflective Judgment

The process of thinking critically about complex issues, considering multiple perspectives, and making decisions based on reasoned analysis.

Teen Years

The period in human development that occurs between childhood and adulthood, typically between ages 13 and 19.